Company Number: 14151855

Analysis Date: 2025-07-29 14:43 UTC

1. Risk Rating: LOW

Justification: Carelodges Group Limited demonstrates strong financial stability with substantial net assets (£6.48m as of 31 December 2024), positive net current assets (£940k), and no overdue filings. The company maintains a healthy cash balance (£501k) and has shown consistent asset values over recent years. The business operates in residential care and property letting, which are generally stable sectors. There are no indications of insolvency or liquidity distress.

2. Key Concerns:

• Concentrated ownership and control: The company’s shares and voting rights are divided among a small group of related individuals (the Jeetoo family), which may pose governance risks or conflicts of interest.
• Related party balances: Material amounts are due from related parties (£153k total), which requires monitoring for collectability and potential impact on liquidity.
• Limited disclosure of profit and loss: The directors elected not to include the profit and loss account in the filed accounts, which restricts insight into operational profitability and cash flow generation.

3. Positive Indicators:

• Strong solvency position with net assets exceeding £6.4m, supported by significant fixed assets primarily in freehold land and buildings.
• Positive working capital position with current assets significantly exceeding current liabilities.
• Up-to-date statutory compliance with accounts filed on time and no overdue confirmation statements.
• Stable employee base (28 employees), indicating operational continuity.
• The company benefits from a diversified business model with activities in residential care and property letting.

4. Due Diligence Notes:

• Obtain and review the company’s management accounts or internal financial reports to assess profitability, cash flow trends, and revenue quality, since the profit and loss was not filed.
• Investigate the nature and terms of related party transactions and balances, including whether these are trade-related or loans, to assess potential liquidity risk.
• Review the governance structure and decision-making processes given the high concentration of ownership and director overlap.
• Assess impairment testing and valuation methodologies for goodwill and tangible fixed assets given their significant carrying amounts.
• Confirm the company’s exposure to regulatory risks in the residential care sector.